Prime Minister Paul Martin announced today that the Government of Canada has reached an agreement in principle with Newfoundland and Labrador that ensures the people of the province will continue to be the primary beneficiaries of offshore resource revenues.
January 28, 2005
Ottawa, Ontario
Prime Minister Paul Martin announced today that the Government of Canada has reached an agreement in principle with Newfoundland and Labrador that ensures the people of the province will continue to be the primary beneficiaries of offshore resource revenues.
“I am pleased to report that Premier Williams and I agree that the arrangements we have worked out today fully meet my commitment to address the province’s concerns about offshore resource revenues triggering reductions in Equalization payments,” stated the Prime Minister.
“This agreement delivers 100 per cent of the offshore revenues and 100 per cent protection of equalization. This deal is worth an estimated $2.6 billion to Newfoundland and Labrador between now and 2012, including an advance payment of $2.0 billion,” added John Efford, Minister of Natural Resources and Regional Minister for Newfoundland and Labrador.
Minister of Finance Ralph Goodale added, “I am delighted these intense negotiations have resulted in an arrangement that addresses the unique economic situation of Newfoundland and Labrador while being fair to all Canadians.”
No amendments to the Canada-Newfoundland Atlantic Accord or Equalization legislation will be required. Payments under the offshore revenue agreement will be made separately from these accordss and the new Equalization-Territorial Formula Financing framework.
Details are provided in the attached backgrounder.
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Backgrounder – Elements of the Agreement on Offshore Revenues between the Government of Canada and Newfoundland and Labrador
This agreement provides the following benefits to Newfoundland and Labrador.
In the second year, the transitional payment would equal one-third of the offset payments the province was entitled to the last year it received equalization.